Question: Assume that you want to purchase 4 round lot shares of GP. The current share price of…

Question:

Assume that you want to purchase 4 round lot shares of GP. The current share price of GP is $56. Your initial margin is 65%. Maintenance margin is 27%. GP pays half yearly dividend of $1 per share. For the borrowed amount you have to pay interest of 7% per annum. After 3 month you want to sell the shares for $62.

Calculate total dividend amount for a quarter.

$200 ? $800

? $400

? $600

Calculate interest amount (approximate) for a quarter.

O $27.489 $523.6

? $137.2

? $261.8

Calculate the return on investment amount (approximate) for a quarter.

16.91%

O 18%

O 50.74%

? 31.41%

Calculate the return on investment amount (approximate) for a nine months.

16.91%

50%

O 94.23%

O 50.73%